CD discussion thread

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indexfundfan
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Re: CD discussion thread

Post by indexfundfan »

jeffyscott wrote: Tue Nov 01, 2022 10:12 am I have seen that sort of thing before with E-Trade and thought about checking if they really would be able to buy a CD when Fidelity, Schwab, and Vanguard weren't showing any availability.

I didn't have any ability to try submitting a trade there, though. My other option would have been to call Schwab or Fidelity and ask if they could buy it for me, even though it was not showing up online (but I didn't bother).
I'm thinking maybe Capital One or Discover "allocate" the number of CDs for each brokerage (or each brokerage requests a certain quantity) to sell. So E*trade might still have some in the inventory if it moves the CDs slower.

I could buy from E*trade but I prefer to buy from Fidelity because at E*trade, dividends are usually only posted for use the next day whereas dividends are generally posted in the morning at Fidelity.
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jeffyscott
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Re: CD discussion thread

Post by jeffyscott »

^ Yeah, I figured that was one way it could work. The other possibility would be that there's a centralized inventory and E-Trade is just slow to update.

Schwab also does dividends the way E-Trade does. They do, however, make it easier for me to buy than Fidelity. With Schwab, and no cash and no margin, I am able to put in a mutual fund sell order and then immediately put in a buy order for a CD. Fidelity, as I recall, didn't allow that. I would have to wait for the mutual fund shares to be sold and only then be able to buy a CD with the cash.
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indexfundfan
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Re: CD discussion thread

Post by indexfundfan »

jeffyscott wrote: Tue Nov 01, 2022 11:46 am ^ Yeah, I figured that was one way it could work. The other possibility would be that there's a centralized inventory and E-Trade is just slow to update.

Schwab also does dividends the way E-Trade does. They do, however, make it easier for me to buy than Fidelity. With Schwab, and no cash and no margin, I am able to put in a mutual fund sell order and then immediately put in a buy order for a CD. Fidelity, as I recall, didn't allow that. I would have to wait for the mutual fund shares to be sold and only then be able to buy a CD with the cash.
I assume E*trade does have the CDs because I can see the Capital One CD inventory going down.
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L84SUPR
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Re: CD discussion thread

Post by L84SUPR »

jeffyscott wrote: Mon Oct 31, 2022 7:03 am
L84SUPR wrote: Sat Oct 29, 2022 11:13 am
MikeG62 wrote: Fri Oct 28, 2022 8:56 am Throwing this one out there.

Fidelity is offering a 5-year non-callable brokered CD (from Capital One) at a yield of 4.90%. FDIC insured.

I've never bought a brokered CD, but this yield is wide enough to comparable term Treasuries to get my attention. I placed an order for 100 of these CD's this morning. Settlement is Nov 2. I plan to hold these till maturity.
I saw something similar on Vanguard but I couldn't figure out how to view the fine print. How do we know the rates are not stepped. I have come across CDs with a great first year rate followed by a typical rate thereafter. I guess I have two questions. In your case how did you check to see if the rates were stepped? And does anybody know how to see the details for CDs on Vanguard?
I don't use Vanguard, but took a look and in the search results, you can click on the bank name in the "issue" column. That will open a page with the CD details, which for this one include: "Coupon type = Regular" ( I guess that's Vanguard's odd terminology for what other brokerages call "fixed"). You can also specify no stepped coupon on the search page, the stepped coupon box has the choices "optional, yes, and no".

I was surprised to get an email notification that my weekend order for this CD had executed at about 6:30 ET. I'd not expected to see that until the bond market opens at about 8, not that it matters.
Thank you very much. That was above and beyond the call.
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starboi
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Re: CD discussion thread

Post by starboi »

Capital One offering 5% for 5 years via brokered CD.
turtlebug
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Re: CD discussion thread

Post by turtlebug »

SkyOne Federal Credit Union has a 22-month CD at 5.00% APY. Minimum opening deposit of 1K. Flexible penalty and fee-free one-time withdrawal up to 50% of initial deposit. Add up to 50% of the initial deposit and receive a one-time fixed rate bump of 0.25% APY (CD must be open for 9-months first). Easy membership w/ACC (and others).

https://www.skyone.org/22month/
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Kevin M
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Re: CD discussion thread

Post by Kevin M »

I can get a TEY of 5% or more with Treasuries from 6-month to about 18-month maturity:

Image

Because of the inverted yield curve from 1-year to 10-year maturities, the 5-year TEY is only 4.48%.

I personally am not going out further than six months with new cash for nominal fixed income, and would be very reluctant to go out five years with the kind of inflation we've experienced recently.

Kevin
If I make a calculation error, #Cruncher probably will let me know.
MikeG62
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Re: CD discussion thread

Post by MikeG62 »

turtlebug wrote: Sun Nov 13, 2022 2:17 pm SkyOne Federal Credit Union has a 22-month CD at 5.00% APY. Minimum opening deposit of 1K. Flexible penalty and fee-free one-time withdrawal up to 50% of initial deposit. Add up to 50% of the initial deposit and receive a one-time fixed rate bump of 0.25% APY (CD must be open for 9-months first). Easy membership w/ACC (and others).

https://www.skyone.org/22month/
That’s an interesting CD (lots of nuance there). However, the field of membership appears quite limited. Few here will likely qualify for it I think.
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turtlebug
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Re: CD discussion thread

Post by turtlebug »

MikeG62 wrote: Sun Nov 13, 2022 5:21 pm
turtlebug wrote: Sun Nov 13, 2022 2:17 pm SkyOne Federal Credit Union has a 22-month CD at 5.00% APY. Minimum opening deposit of 1K. Flexible penalty and fee-free one-time withdrawal up to 50% of initial deposit. Add up to 50% of the initial deposit and receive a one-time fixed rate bump of 0.25% APY (CD must be open for 9-months first). Easy membership w/ACC (and others).

https://www.skyone.org/22month/
That’s an interesting CD (lots of nuance there). However, the field of membership appears quite limited. Few here will likely qualify for it I think.
My understanding is this offer is available to all via SaveBetter or one can join the ACC (American Consumer Council) to be eligible. When I joined the ACC years ago for other credit union deals, my cost to join was $8.
taxck33
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Re: CD discussion thread

Post by taxck33 »

It looks as if the only 5 year CD available at Fidelity now is 4.25%, which is way lower than what they were at before they all disappeared a week ago. Does this mean we should be locking in 5% deals where they're available even though the Fed is expected to continue increasing rates?
HeelaMonster
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Re: CD discussion thread

Post by HeelaMonster »

In Vanguard's display of brokered CDs, am I safe in assuming that the offerings WITHOUT "callable" in their listing are not (callable)... as opposed to the ones that are marked callable? I am not seeing any place to drill deeper on individual CDs, beyond what is listed in that display of CDs available within a given maturity term (e.g., 2 years). But they do seem to be explicit in identifying which ones are callable, on that listing.
Philly30
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Re: CD discussion thread

Post by Philly30 »

Way CD Rates are going it may be a good ides to remove money from IBONDS next spring and put it in A CD
MikeG62
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Re: CD discussion thread

Post by MikeG62 »

taxck33 wrote: Tue Nov 15, 2022 2:00 pm It looks as if the only 5 year CD available at Fidelity now is 4.25%, which is way lower than what they were at before they all disappeared a week ago. Does this mean we should be locking in 5% deals where they're available even though the Fed is expected to continue increasing rates?
The Fed's expected future hikes are already priced in. The driver of higher CD rates going forward would be if the Fed has to go higher to vanquish inflation.

I'd say good luck finding 5-year CD's at 5.0% after last weeks CPI and this weeks PPI. I saw upper 4's for 2 year CD's today at Fidelity, but not out to 5 years. I bought a few 5-year CD's a few weeks ago at 4.90%. I consider those well bought.
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InvestorHowie
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Re: CD discussion thread

Post by InvestorHowie »

HeelaMonster wrote: Tue Nov 15, 2022 4:45 pm In Vanguard's display of brokered CDs, am I safe in assuming that the offerings WITHOUT "callable" in their listing are not (callable)... as opposed to the ones that are marked callable? I am not seeing any place to drill deeper on individual CDs, beyond what is listed in that display of CDs available within a given maturity term (e.g., 2 years). But they do seem to be explicit in identifying which ones are callable, on that listing.
If you drill down into any CD in Vanguard's search you'll see a section called 'Calls & sinking fund features'. The first entry will be 'Callable' with 'No' or 'Yes' with many more details beneath. You may not see this drill-down if you simply click on the highest rate possible - you'll likely need to do a search based on duration or rate to see these details.

EDIT: I think you're correct that the short description should clue you in on the 'callable' factor but I always drill down to be sure. Lots of other helpful details there too.
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HeelaMonster
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Re: CD discussion thread

Post by HeelaMonster »

InvestorHowie wrote: Tue Nov 15, 2022 8:32 pm
HeelaMonster wrote: Tue Nov 15, 2022 4:45 pm In Vanguard's display of brokered CDs, am I safe in assuming that the offerings WITHOUT "callable" in their listing are not (callable)... as opposed to the ones that are marked callable? I am not seeing any place to drill deeper on individual CDs, beyond what is listed in that display of CDs available within a given maturity term (e.g., 2 years). But they do seem to be explicit in identifying which ones are callable, on that listing.
If you drill down into any CD in Vanguard's search you'll see a section called 'Calls & sinking fund features'. The first entry will be 'Callable' with 'No' or 'Yes' with many more details beneath. You may not see this drill-down if you simply click on the highest rate possible - you'll likely need to do a search based on duration or rate to see these details.

EDIT: I think you're correct that the short description should clue you in on the 'callable' factor but I always drill down to be sure. Lots of other helpful details there too.
Thanks! It wasn't easy (I could only get there by backing out and running a search from scratch, once I had identified the CD of interest, which seemed very roundabout)... but I did find those details. I knew there had to be more than I was being presented on the select-your-purchase list.
evelynmanley
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Re: CD discussion thread

Post by evelynmanley »

Very interesting article by Ken Tumin on 11/23/22:

https://www.depositaccounts.com/blog/cd-rates-survey/

<<Based on the yield changes of long-term Treasury notes and brokered CDs, we may be at or near peak CD rates. Even though the Fed is likely to hike rates a few more times, the markets are seeing an end of rate hikes around the first half of next year. The current odds point to a peak target federal funds rate of 5.00%-5.25% (125 bps above today’s level) that is reached around the middle of next year (per CME FedWatch Tool.)<<
hudson
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Best 5 Year CDs that I could find

Post by hudson »

Fidelity brokered CD...non-callable....4%
CUSIP DSMBH7764

Vanguard's offering for 5 years and higher are all callable.

Bread Savings is offering a regular CD at 4.64%. https://savings.breadfinancial.com/prod ... of-deposit

Navy Federal Credit Union 4.15%
Penfed CU 3.90%
Andrews FCU 4.2%

Edit: Capital One 4.25% APY
Last edited by hudson on Fri Nov 25, 2022 4:30 pm, edited 1 time in total.
unbiased
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Re: CD discussion thread

Post by unbiased »

Sad to see these non callable 5% yielders go away. I was able to grab a few of them, but wish I had bought more—just didn’t want all the taxable income.

Still, with treasuries easily yielding north of 4%, that’s not a bad deal either and they tend to be more liquid if you need to cash out early.
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